Stock Name: NESTLE
Company Name: NESTLE (M) BHD
Maybank Research raised its call on food manufacturer Nestle Malaysia Bhd to "hold" from "sell" on the back of a stronger earnings and exports outlook.
"Nestle's ongoing heavy capex is supporting the group's earnings momentum, particularly with an upcoming plant which should provide additional capacity," Maybank said in a note.
Maybank raised its 2013-2014 earnings forecast by 2-3 percent due to stronger export projections and after Nestle reported a 10 percent export sales growth in the first quarter of 2012.
"While more than 50 percent of Nestle's exports are to ASEAN countries, there is still much potential outside ASEAN given that Nestle Malaysia is being positioned as the halal food hub for the Nestle group," Maybank said, referring to the Association of Southeast Asian Nations.
Maybank also revised its target price upwards to RM54.20 (US$17.17) per share from RM52.40 earlier. As of 9.25 am, Nestle shares rose 0.32 percent against the Malaysian benchmark stock index's 0.06 percent gain. -- Reuters
Company Name: NESTLE (M) BHD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 54.20 |
Maybank Research raised its call on food manufacturer Nestle Malaysia Bhd to "hold" from "sell" on the back of a stronger earnings and exports outlook.
"Nestle's ongoing heavy capex is supporting the group's earnings momentum, particularly with an upcoming plant which should provide additional capacity," Maybank said in a note.
Maybank raised its 2013-2014 earnings forecast by 2-3 percent due to stronger export projections and after Nestle reported a 10 percent export sales growth in the first quarter of 2012.
"While more than 50 percent of Nestle's exports are to ASEAN countries, there is still much potential outside ASEAN given that Nestle Malaysia is being positioned as the halal food hub for the Nestle group," Maybank said, referring to the Association of Southeast Asian Nations.
Maybank also revised its target price upwards to RM54.20 (US$17.17) per share from RM52.40 earlier. As of 9.25 am, Nestle shares rose 0.32 percent against the Malaysian benchmark stock index's 0.06 percent gain. -- Reuters
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